2022 (8) TMI 954 - AT - Income Tax

Addition of cash deposited in the bank - HELD THAT - It is a fact that since the assessee has not been able to produce any such evidence to justify the genuineness of the deposit made to the bank account before the authorities below. But the Ld. Counsel appearing for the assessee before us prayed for another opportunity to be given to the assessee to substantiate the genuineness of source of cash deposit in the bank and thus the issue may be remanded to the file of the Ld. AO for deciding the same afresh as contended by him. Thus we find it fit and proper to give a further opportunity to the assessee to submit the source of cash deposit by supporting the evidence for proper adjudication of the matter. We, therefore, dispose of this issue by remitting the same to the file of the Ld. AO to decide the same afresh by passing a reasoned order upon giving an opportunity of being heard to the assessee. Addition for non-deduction of tax in respect of payment made to legal consultant in U.K. - HELD THAT - Particular documents relied upon by the assessee's counsel as aforesaid we find that for the ends of justice the assessee be given a further opportunity of being heard in order to substantiate the claim for non-deduction of TDS. Hence, we dispose of this ground of appeal by remitting the same to the file of the AO to consider the issue afresh and to pass a reasoned order upon giving an opportunity of being heard to the assessee and upon considering the evidences in respect of the claim made by the assessee in regard to the remittances which the assessee may choose to file at the time of hearing of the matter. This ground of appeal is, thus, disposed of for statistical purposes. Addition on account of non-deduction of tax on rent paid - HELD THAT - It is the case of the assessee that all the payments were made below the amount and therefore, tax was not deducted. Another opportunity of being heard has been requested to be given to the assessee by the Ld. A.R. before us in order to substantiate the claim of the assessee before the authorities below which has not been controverted by the Ld. D.R. Keeping in view the submissions made by the parties for the ends of justice we are disposing of this ground by remitting the issue to the file of the Ld. AO to consider the same afresh upon giving an opportunity of being heard to the assessee and upon considering the evidences which the assessee may choose to file at the time of hearing of the matter. This ground of appeal preferred by the assessee is allowed for statistical purposes. Addition in respect of disallowance of 1/5th of the ticketing and travelling expenses - HELD THAT - It appears that before the Ld. AO, nothing has been submitted by the assessee in support of his claim. Before the First Appellate Authority the bank statement substantiating the payment has only been made by the assessee. However, as to how the expenditure is being made as business purpose that has not been clarified before the First Appellate Authority which according to us seems to be justified and hence upheld. This ground of appeal preferred by the assessee thus fails and dismissed. Disallowance of miscellaneous expenses - HELD THAT - It appears that in the absence of relevant bills/evidences in support this claim made by the assessee the addition was made by the authorities below. However, for the ends of justice we are remitting the issue to the file of the AO to consider it afresh and to pass a reasoned order upon giving an opportunity of being heard to the assessee and upon considering the evidence which the assessee may choose to file at the time of hearing of the matter. This ground of appeal preferred by the assessee is allowed for statistical purpose.

Summary

Issues:
- Delay in filing appeals
- Addition on account of cash deposits in the bank
- Non-deduction of tax on payments made to a legal consultant
- Non-deduction of tax on rent paid
- Disallowance of a portion of ticketing and traveling expenses
- Disallowance of miscellaneous expenses

Delay in filing appeals:
The appeals filed by the assessee were delayed, citing reasons such as the Director shifting to Mumbai and difficulty in receiving notices. The delay was condoned by the tribunal considering the genuine circumstances presented by the assessee.

Addition on account of cash deposits in the bank:
The assessee failed to explain the source of a cash deposit in the bank account, leading to an addition of Rs. 11,02,000. The tribunal remitted the issue to the assessing officer for a fresh decision, providing the assessee with an opportunity to substantiate the source of the cash deposit.

Non-deduction of tax on payments made to a legal consultant:
Payments made to a legal consultant without TDS deduction resulted in an addition of Rs. 95,05,505. The tribunal remitted the issue to the assessing officer for a reevaluation, allowing the assessee to provide further evidence to support the claim of non-deduction of TDS.

Non-deduction of tax on rent paid:
The assessee did not deduct TDS for rent payments, leading to an addition of Rs. 8,29,000. The tribunal remitted the issue to the assessing officer for a fresh decision, providing the assessee with an opportunity to substantiate the claim.

Disallowance of a portion of ticketing and traveling expenses:
A portion of ticketing and traveling expenses was disallowed due to lack of supporting documents. The disallowance was upheld as the purpose of the expenditure was not clarified adequately.

Disallowance of miscellaneous expenses:
Miscellaneous expenses were disallowed due to the absence of relevant bills/evidence. The tribunal remitted the issue to the assessing officer for reconsideration, providing the assessee with an opportunity to provide supporting evidence.

In conclusion, the tribunal partly allowed the appeals filed by the assessee, addressing various issues such as delay in filing appeals, additions on cash deposits, non-deduction of tax on payments, rent, and expenses. The tribunal remitted several issues back to the assessing officer for fresh consideration, allowing the assessee an opportunity to substantiate their claims with proper evidence.